Arafura Rare Earths share price rebounds strongly after dumping 17% in 5 days

It’s been a rollercoaster month for the Arafura Rare Earths Ltd (ASX: ARU) share price. Just take a look at the chart below.

As can be seen, the stock was on a volatile but relatively horizontal trajectory for much of the period between April and December, before rocketing 36% between 8 December and 14 December, hitting a new 52-week high of 55 cents in early trade last Thursday.

From there, it plummeted. Stock in the rare earths developer tumbled 17% over the following five sessions to hit an intraday low of 42.5 cents yesterday.

Fortunately, however, things are looking up today. The Arafura Rare Earths share price is up 4.55% right now, trading at 46 cents.

For comparison, the All Ordinaries Index (ASX: XAO) hasn’t gone anywhere this month. It’s currently just 0.6% lower than it was in late November.

So, what’s been moving the Arafura Rare Earths share price lately? Let’s take a look.

What’s been going on with the Arafura share price lately?

Interestingly, there’s been no price-sensitive news from the company since early December. However, the recent volatility exhibited by the Arafura Rare Earths share price might date back that far.

The company announced a $121 million placement on 5 December, wherein Gina Rinehart ultimately took a $43 million stake – leaving the billionaire with around 8% of the company. Each new share on offer under the placement was priced at 37 cents.

The Arafura Rare Earths share price’s surge amid the official confirmation of Rinehart’s investment may have later spurred some investors to lock in profits, thereby driving the stock lower in subsequent sessions.

Fortunately, its recent tumble hasn’t majorly dinted the rare earths developer’s strong year to date performance.

The Arafura Rare Earths share price has gained 98% since the start of 2022. It’s also currently 153% higher than it was this time last year.

For comparison, the All Ordinaries Index has fallen 7% year to date and 4% over the last 12 months.

The post Arafura Rare Earths share price rebounds strongly after dumping 17% in 5 days appeared first on The Motley Fool Australia.

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More reading

• Why Argosy Minerals, Arafura, Deep Yellow, and Pro Medicus shares are charging higher
• Why did the Arafura Rare Earths share price dive 9% on Tuesday?
• Why Appen, Arafura, Aurizon, and Star shares are sinking today
• Why is the Arafura Rare Earths share price rocketing 13% today?
• Why Arafura, Block, Leo Lithium, and St Barbara shares are storming higher

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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